News Article
Semico sees modest growth for 2005
Semico is predicting modest growth for the semiconductor industry based on tehir formulaic tools.
Semico is predicting modest growth for the semiconductor industry based on tehir formulaic tools.
Inventory levels have improved, and are now only mildly out of kilter. We continue to experience pricing pressures, combined with low capacity utilization. However, end-use market strength is sustaining, preventing prices from collapsing.
This stability is reflected in Semicos forecast of very moderate growth, with either single-digit growth or decline occurring in each of the remaining quarters this year, with no one quarter expected to fluctuate by more than two percentage points.
For the remainder of 2005, the state of the industry is best described as temperate. Historically, semiconductor growth generally falls within two categories—sub-10% growth, or years in which growth exceeds 18%. This year, indications are the market will experience sub-10% growth—Semico continues to forecast worldwide semiconductor revenue shipments will increase 2.0% in 2005 to $217.3 billion.
Looking ahead, the Semico sees early indications that 2006 will be another moderate year, with revenues increasing 8.1% to $234.9 billion. Similar to 2005, they do not expect large fluctuations in quarterly revenue growth in 2006. The recovery will experience stronger growth in 2007 and 2008, with each year projected to increase by more than 18%; 2007 revenues are expected to escalate 19.8%, followed by another relatively strong 18.1% growth in 2008.
Inventory levels have improved, and are now only mildly out of kilter. We continue to experience pricing pressures, combined with low capacity utilization. However, end-use market strength is sustaining, preventing prices from collapsing.
This stability is reflected in Semicos forecast of very moderate growth, with either single-digit growth or decline occurring in each of the remaining quarters this year, with no one quarter expected to fluctuate by more than two percentage points.
For the remainder of 2005, the state of the industry is best described as temperate. Historically, semiconductor growth generally falls within two categories—sub-10% growth, or years in which growth exceeds 18%. This year, indications are the market will experience sub-10% growth—Semico continues to forecast worldwide semiconductor revenue shipments will increase 2.0% in 2005 to $217.3 billion.
Looking ahead, the Semico sees early indications that 2006 will be another moderate year, with revenues increasing 8.1% to $234.9 billion. Similar to 2005, they do not expect large fluctuations in quarterly revenue growth in 2006. The recovery will experience stronger growth in 2007 and 2008, with each year projected to increase by more than 18%; 2007 revenues are expected to escalate 19.8%, followed by another relatively strong 18.1% growth in 2008.
